Last Updated on June 28, 2021 by LawEuro
German Civil Code (BGB) German law
Subtitle 2
Usufruct in rights
Section 1068
Statutory definition of usufruct in rights
(1) The subject of the usufruct may also be a right.
(2) Usufruct in rights is governed by the provisions on usufruct in things with the necessary modifications, except to the extent that sections 1069 to 1084 lead to a different conclusion.
Section 1069
Creation
(1) The creation of the usufruct in a right is governed by the provisions applying to the transfer of the right.
(2) No usufruct may be created in a right that is non-transferable.
Section 1070
Usufruct in a right to performance
(1) If a right under which performance may be required is the subject of usufruct, the legal relationship between the usufructuary and the person obliged is governed by the provisions, with the necessary modifications, that apply to the legal relationship between the acquirer and the person obliged in the case of transfer of the right.
(2) Where the exercise of the usufruct is transferred to an administrator under section 1052, the transfer does not take effect in relation to the person obliged until he obtains knowledge of the judicial order made or if he is served with a notification of the judicial order. The same applies to the termination of the administration.
Section 1071
Termination or alteration of the encumbered right
(1) A right subject to usufruct may be terminated by legal transaction only with the approval of the usufructuary. Approval is to be declared to the person in whose favour it is given; it is irrevocable. The provision of section 876 sentence 3 is unaffected.
(2) The same applies in the case of an alteration of the right, to the extent that this adversely affects the usufruct.
Section 1072
Termination of usufruct
The termination of the usufruct, under the provisions of sections 1063 and 1064, occurs even if the right subject to the usufruct is not a right to a movable thing.
Section 1073
Usufruct in a life annuity
The usufructuary of a life annuity, a retirement security or a similar right is entitled to the individual benefits that may be demanded on the basis of the right.
Section 1074
Usufruct in a claim; notice and collection
The usufructuary of a claim is entitled to collect the claim and, if the due date is dependent on notice by the creditor, to give notice of termination. He must ensure proper collection. He is not entitled to make other dispositions of the claim.
Section 1075
Effect of performance
(1) Upon the performance of the debtor to the usufructuary, the creditor acquires the object provided and the usufructuary acquires the usufruct in the object.
(2) If consumable things are provided, the usufructuary acquires the ownership; the provision of section 1067 applies with the necessary modifications.
Section 1076
Usufruct in claim bearing interest
If an outstanding claim bearing interest is the subject of the usufruct, the provisions of sections 1077 to 1079 apply.
Section 1077
Notice and payment
(1) The debtor may pay the capital only to the usufructuary and the creditor jointly. Each of them may require that payment be made to them jointly; each may require, instead of payment, deposit for both of them.
(2) The usufructuary and the creditor may give notice only jointly. The notice of the debtor is effective only if it is declared to the usufructuary and the creditor.
Section 1078
Cooperation in collection
Where the claim is due, the usufructuary and the creditor are obliged to one another to cooperate in collection. If the due date depends on notice, either party may require the cooperation of the other in the notice, if the collection of the debt is necessary by reason of danger to its security under the rules of proper management of assets.
Section 1079
Investment of the capital
The usufructuary and the creditor are obliged to each other to cooperate in order that the capital collected is invested with interest under the provisions applying to the investment of money held in trust for a ward and at the same time the usufruct is created for the usufructuary. The nature of the investment is determined by the usufructuary.
Section 1080
Usufruct in a land charge or annuity land charge
The provisions on usufruct in a claim also apply to usufruct in a land charge and in an annuity land charge.
Section 1081
Usufruct in bearer instruments or instruments made out to order
(1) If a bearer instrument or an instrument made out to order that bears a blank endorsement is the subject of usufruct, the possession of the instrument and of the renewal certificate relating to the instrument belongs to the usufructuary and the owner jointly. The possession of the interest, annuity or dividend coupons relating to the instrument belongs to the usufructuary.
(2) To create the usufruct, the granting of co-possession is sufficient in place of the delivery of the instrument.
Section 1082
Deposit
The instrument and the renewal certificate, at the request of the usufructuary or the owner, must be deposited at a depositary institution with the stipulation that delivery may be requested only by the usufructuary and the owner jointly.
Section 1083
Cooperation in collection
(1) The usufructuary and the owner of the instrument are obliged to each other to cooperate for the purpose of collecting the capital due, of obtaining new interest, annuity or dividend coupons and of undertaking other measures that are necessary for proper asset management.
(2) In the case of the redemption of the instrument, the provisions of section 1079 apply. A premium paid on redemption is deemed to be part of the capital.
Section 1084
Consumable things
If a bearer instrument or an instrument made out to order that bears a blank endorsement is, under section 92, among consumable things, the provisions of section 1067 apply.
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